Current Events in February 2013

With student loans now topping credit cards as the largest source of consumer debt in the U.S., the Consumer Financial Protection Bureau (CFPB) is gathering information to develop options for policymakers to make repayment of private student loans more manageable for struggling borrowers.

The CFPB says while private student loan borrowers wish to pay their loans, they face high payments, lack alternative repayment and refinance options.

“Too many private student loan borrowers are struggling with unwieldy debt that prevents them from climbing the economic ladder,” said CFPB Director Richard Cordray. “We will be analyzing plans for policymakers to consider that might help avoid a repeat of the mortgage meltdown for today's student loan borrowers.”

Difficulty repaying

In October 2012, the CFPB Student Loan Ombudsman released a report noting that consumers had trouble negotiating affordable repayment plans with their lenders and servicers for private student loans -- loans that are not designed with income-based payment options. This report to the Secretary of the Treasury, the Secretary of Education, the CFPB Director, and Congress recommended that policymakers explore options to spur the availability of alternative repayment and refinance options.

In July 2012, Director Cordray and Secretary of Education Arne Duncan submitted a report to Congress on the private student loan market. The study indicates there are more than $8 billion in defaulted private student loan balances, representing 850,000 distinct loans, with even more in delinquency.

Unlike distressed borrowers with federal student loans, private student loan borrowers generally do not have long-term forbearance, income-based repayment, or rehabilitation options if they default. The study concluded that many borrowers are struggling to pay off private student loans, especially in tough economic times.

The CFPB has released a Notice and Request for Information in the Federal Register. With the information gathered from that notice, the CFPB plans to explore more detailed recommendations to policymakers in order to facilitate greater repayment affordability of private student loans.

Flexible repayment options sought

The Bureau is looking for ways that private student loan borrowers can have more flexible repayment options and is seeking input on a variety of issues related to repayment affordability, including:

• How student loan burdens might affect the broader economy and hinder access to mortgage credit and automobile loans;
• How distressed borrowers manage their student loan obligations;
• What options currently exist for borrowers to lower their monthly payments on private student loans;
• Examples of successful alternate payment programs in other markets and which features could apply to this market; and
• The most effective mechanisms for communicating with distressed borrowers.

Members of the public, including financial institutions, colleges and universities, professional associations representing health professionals and educators, housing finance experts, students, and families are encouraged to submit comments.

Comments will be accepted until April 8, 2013.

The Federal Trade Commission (FTC) would like for HTC America to be a bit more careful in making sure the software it develops for smartphones and tablets is secure.

In a settlement announced today, HTC has agreed to do so. Specifically, the company will fix vulnerabilities in millions of HTC devices and will develop a program to avoid such oversights in the future.

HTC develops and manufactures mobile devices based on the Android, Windows Mobile, and Windows Phone operating systems. Like all manufacturers, it has customized the software on its devices in order to differentiate itself from competitors and to comply with the requirements of mobile network operators.   

And that, says the FTC, is where the problem lies. The commission said HTC America failed to provide its engineering staff with adequate security training, failed to review or test the software on its mobile devices for potential security vulnerabilities, failed to follow well-known and commonly accepted secure coding practices, and failed to establish a process for receiving and addressing vulnerability reports from third parties.

The FTC’s complaint details several vulnerabilities found on HTC’s devices, including the insecure implementation of two logging applications -- Carrier IQ and HTC Loggers -- as well as programming flaws that would allow third-party applications to bypass Android’s permission-based security model.

Due to these vulnerabilities, the FTC charged, millions of HTC devices compromised sensitive device functionality, potentially permitting malicious applications to send text messages, record audio, and even install additional malware onto a consumer’s device, all without the user’s knowledge or consent.

The FTC alleged that malware placed on consumers’ devices without their permission could be used to record and transmit information entered into or stored on the device, including, for example, financial account numbers and related access codes or medical information such as text messages received from healthcare providers and calendar entries concerning doctor’s appointments.

In addition, malicious applications could exploit the vulnerabilities on HTC devices to gain unauthorized access to a variety of other sensitive information, such as the user’s geolocation information and the contents of the user’s text messages.

Moreover, the complaint alleged that the user manuals for HTC Android-based devices contained deceptive representations, and that the user interface for the company’s Tell HTC application was also deceptive. In both cases, the security vulnerabilities in HTC Android-based devices undermined consent mechanisms that would have otherwise prevented unauthorized access or transmission of sensitive information.

Beyonce lip-syncing at the presidential inauguration. Marco Rubio getting thirsty during his speech and taking a sip of water. President Obama playing golf with Tiger Woods.

You call these scandals?

Stories like these have made news headlines in the last month or so in many newspapers, news shows and local news outlets, and it’s not like they  were mentioned after the important reports of the day. In many cases they were the top stories and happened to be among the first things discussed on channels like CNN, MSNBC and other popular news outlets.

We're not even talking about cruise passengers having to poop in bags, which is actually not exactly earth-shaking, either, considering that indoor plumbing is a relatively recent development for most of humanity.

OK, so what's really news? Well, how about this: last summer, Barclays Bank paid $450 million to settle a claim that it tried to manipulate interest rates to pad its own pockets, which in turn affected how much consumers were paying on their loans.

Simply ignored

Most of the major news outlets in the United States either chose to cover this huge story very briefly or simply ignored it altogether, which seems to be a continued pattern of hard news outlets going with either the softest news possible or choosing stories that are completely frivolous and do nothing to help the viewer.

In research conducted by Media Matters in 2012, it found that within 15 days of the Barclays story becoming public, CNN, NBC, Fox News, CBS, MSNBC and ABC covered the story for 12 minutes combined. Combined. 

Media Matters also pointed out that from June 27, 2012 to July 12, 2012, when the Barclays story was in full swing, the evening news on each of these oulets spent a whopping 91 minutes on stories about Tom Cruise’s divorce from Katie Holmes, and these same stations also spent an additional 65 minutes on animal attacks around the U.S., namely shark attacks and a zoo mishap where a chimpanzee attacked an American student at an African animal reserve.

On January 22, 2013, when the Beyonce lip-syncing "scandal" hit the airwaves — and yes, some actually called it a scandal -- it was the main story in many major news outlets and in some cases newscasters talked more about her lip-syncing than the inauguration itself.

Poland Spring

And instead of newscasters discussing the ins and outs of Marco Rubio’s  response to President Obama’s State of the Union address, most news shows went on at great length about the guy taking a nip of his Poland Spring water bottle. Drinking water is newsworthy now?

In fact, when you do an Internet search on Rubio’s State of the Union speech, there seem to be just as many references to “Bottlegate,” as it’s ridiculously called, as there are about the actual speech.

The media’s insistence on covering these trivial incidents has caused many viewers to develop an unhealthy dose of skepticism about the more serious stories being reported.

According to the Pew Research Center for the People & the Press, the public’s opinion of major news outlets has continued to drop over the years, as the overall positive believability rating with the major news outlets is currently at 56 percent, which dropped from 62 percent in 2010, which also fell from 71 percent in 2002.

In a 2010, a survey by the company Rasmussen showed that 87 percent of Americans believe the media pays far too much attention to celebrity stories, but it also showed that 84 percent of those same people surveyed believed American consumers would rather turn to celebrity news than more important stories.

In fact, if you read some of the celebrity-driven stories on the Internet and see the comments readers post, you’ll see that, indeed, there seems to be a heavier interest in lighter stories compared to serious ones, which may cause a person to ask if consumers would rather read about Beyonce or Tom Cruise rather than what happened with John Brennan during his Senate confirmation early this month.

Attractive suspects

And it’s not just celebrities that are taking over the airways these days, as everyday there seems to be a new story about a murder trial involving a physically attractive suspect like Jodi Arias or an extensive report about a dumb Internet dance craze becoming popular.

Do you remember the story about the guy who said his son flew off in a balloon a few years ago?

It seems like since then, there has been an increase in stories with snazzy headlines that serve as a quick fix for people, but do little to inform viewers about the events that impact their everyday lives.

And it’s doubtful that things will turn around anytime soon, as program directors and show producers continue to be on the chopping block if they don’t pull in strong ratings, so they might say to themselves, "Why not go with a Marco Rubio water story as long as it entertains?

I mean, getting good ratings only comes at the expense of the American public, right? But it's the American public that "votes" for this stuff by turning aside from more serious publications and broadcasts. 

On the other hand, journalism is supposed to be a profession, not a business. Journalists have an obligation to cover serious news of major public import. If their bosses would rather cover flying squirrels, maybe serious journalists have an obligation to go work somewhere else.

You think?

Smithfield Packing Company of Smithfield, VA, is recalling approximately 38,000 pounds of pork sausage that may contain small pieces of plastic, likely from gloves.

The following products are subject to recall:

• 1-lb. chubs of "Gwaltney mild pork sausage roll" with a use-by date of Mar. 12, 2013
• Cases containing chubs of "Gwaltney mild pork sausage roll" with a case code of 78533109741

The recalled product bears the establishment number "Est. 221-A" inside the USDA mark of inspection. The products were produced on Jan. 11, 2013, and were distributed in Alabama, District of Columbia, Florida, Georgia, Louisiana, Maine, Maryland, North Carolina, New Jersey, New York, Pennsylvania and Texas.

The problem was discovered after the company received two consumer complaints. There have been no reports of injury at this time.

Consumers with questions about the recall should contact Wendy Johnson, Manager of Consumer Affairs, at (877) 933-4625.  

There was little movement in mortgage interest rates as tracked by Freddie Mac and Bankrate.com during the past week.

According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 3.56 percent with an average 0.8 point for the week ending February 21, compared with last week's average of 3.53 percent. Last year at this time, the 30-year FRM averaged 3.95 percent.

The 15-year FRM averaged 2.77 percent with an average 0.8 point -- the same as last week. A year ago at this time, it averaged 3.19 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 2.64 percent this week with an average 0.5 point -- the same as last week. A year ago, the 5-year ARM averaged 2.80 percent.

The 1-year Treasury-indexed ARM averaged 2.65 percent this week with an average 0.4 point, up four basis points from last week. At this time last year, the 1-year ARM averaged 2.73 percent.

"Mortgage rates have been relatively stable, hovering near record lows, for the past four weeks which is helping to spur new home construction,” according to Frank Nothaft, vice president and chief economist, Freddie Mac. “For instance, new construction on single-family houses rose to an annualized rate of 613,000 in January, the most since July 2008. In addition, single-family building permits were up to the highest issuance level since June 2008."

Bankrate

Bankrate's read on mortgage rates showed little movement. The benchmark 30-year fixed mortgage rate inched up one basis point to 3.80 percent,with an average of 0.33 discount and origination points.

The average 15-year fixed mortgage rate was unchanged this week at 3.02 percent. The average jumbo 30-year fixed mortgage rate was up two basis points -- to 4.21 percent. Adjustable rate mortgages were mixed, with the 5-year ARM rising from 2.75 percent to 2.76 percent, and the 7-year ARM down slightly from 2.98percent to 2.97 percent.

The last time mortgage rates were above five percent was in April 2011, when the average 30-year fixed rate was 5.07 percent, meaning a $200,000 loan would have carried a monthly payment of $1,082.22. With the average rate now 3.79 percent, the monthly payment for the same size loan would be $931.91 -- a difference of $150.31 per month for anyone refinancing now.

Many consumers struggle with credit card debt. If you have three or four cards that carry balances, you are looking at three or four minimum payments each month, often at high rates of interest.

Getting those multiple balances consolidated on one low-interest, or even 0% interest card can save money and help monthly cash flow. But consumers often encounter frustration when trying to find just the right card.

Alicia, of Little Falls, N.J., said she tried to transfer her balances to a Citibank card but was unprepared for what she considers an invasive application process.

“The male I spoke with was asking me too many personal questions about my finances and how I was paying my bills,” Alicia wrote in a ConsumerAffairs post. “I told him it was none of your business and my bills do get paid on time. He told me he could not do the balance transfer without updating personal info.”

Tougher application process

After a prolonged standoff, Alicia said Citibank simply closed her account. The lesson here is that banks are much more thorough in the application process in this new age of credit.

Anne, of Bozeman, Mont., said she used a 0% balance transfer check from Chase to pay off an account from another bank. But the transfer, she says, hasn't gone smoothly.

“Since then I have had to contact Chase each month to have interest fees explained and reversed,” she writes. “Each month the fees have been reversed, with the representatives not being able to explain why the interest was charged. Today I spoke with a representative who refused to reverse interest fees and in her defense she provided an explanation that directly contradicts what is printed on the back of the credit card statement.”

Disconnect

Doris, of Aiken, S.C., says she accepted a Discover balance transfer but found either she misunderstood the terms or the company did.

“They tacked on another $40 surcharge every month (not in Terms) and immediately raised my minimum payment percentage,” Doris wrote. “I am 75 and have only SS for income. It threw my budget off so I couldn't buy food, and then they started calling me accusing me of 'spending too much for my income.' They cut my available balance in half so I'd be over the limit, added huge penalties, and started a domino effect on my former 805 FICO that ruined my financial security.”

Doris' mistake was continuing to use the card with the transferred balance for new purchases. When transferring a balance, you should have a second card to use for day-to-day expenses. Understanding how balance transfers are supposed to work is key to saving money with them.

The best balance transfer cards

Card Hub, a credit card comparison site, has conducted a balance transfer study compares the balance transfer policies of each major credit card issuer and identifies the best balance credit cards on the market. The study found that six of the 11 issuers surveyed – Barclaycard US, Capital One, Pentagon Federal Credit Union, USAA, U.S. Bank, and Wells Fargo – allow you to transfer most common types of consumer debt, including mortgages, auto loans, small business loans, and student loans.

Discover also accepts balance transfers from auto loans and medical expenses, but not mortgages, small business loans, personal loans, student loans, HELOCs, or payday loans. Out of the offers from the 11 major issuers included in this study, the three best balance transfer credit cards on the market are:

• Chase's Slate Card
• Pentagon Federal Credit Union’s Platinum Rewards Card
• Discover’s it Card

“While there are a number of interesting conclusions you can glean from an examination of the balance transfer credit card landscape, perhaps the most significant remains the existence of free balance transfer credit cards,” said Card Hub CEO Odysseas Papadimitriou, a personal finance expert who previously served as a senior director at Capital One.

“The Slate Card from Chase boasts the best balance transfer terms by far, offering qualified consumers 0% on transferred debt for the first 15 months without charging either a balance transfer fee or an annual fee," Papadimitriou said. "In other words, it enables you to effectively eliminate your current interest rate for free. For the average consumer with a $6,700 credit card balance, that’s worth up to $1,000 in fees and finance charges that you no longer have to pay.”

Powerful tool

Papadimitriou says using a balance transfer to consolidate small balances on car and student loans can be a very powerful tool if used strategically. Not only does this type of transfer offer a pathway to a lower interest rate, but it also enables you to effectively transform secured debt into unsecured debt.

While an auto loan is guaranteed by the value of the vehicle it’s used to purchase – meaning the lender could repossess your car if you don’t pay as agreed – credit cards aren’t backed by any such physical property. Transferring the last little bit of an auto loan to a credit card will also get you the title sooner.

“With that said, you need to proceed with caution when contemplating transferring a non-credit card balance and make especially sure that you will be able to pay off your balance within the low-interest introductory period,” Papadimitriou said.

Regardless of which balance transfer card you select, make sure you understand the terms. If you are unclear on any points, ask a customer service representative before you execute the transfer.

Also, don’t fall into the common trap of only focusing on the introductory interest rate and term. Not only might the balance transfer fee increase your overall costs significantly, but regular rates could also quickly rob you of any savings if you aren’t able to pay off your full balance by the time regular rates take effect.

Optimistic news releases yesterday warbled about daily deals site LivingSocial raising $110 million. In an email to employees, CEO Tim O'Shaughnessy called the iinfusion "a tremendous vote of confidence in our business from the people who know us best," according to the Washington Business Journal. 

But all may not be so rosy. A day after the deal, financial research firm PrivCo issued a scathing assessment of the transaction, calling it "a last-ditch attempt to save the privately-held daily deals company from imminent financial ruin."

PrivCo said that, far from being another round of venture capital financing, as many reports implied, the deal was  a mixture of "emergency" convertible debt and warrants.

It also pegs the company's current valuation at just $330 million, down from $5.7 billion in Dec. 2011. 

"LivingSocial essentially threw itself at the mercy of its investors -- who had already sunk over $823 million in the company before today's $110 million additional lifeline -- to avoid a total collapse of the company that would have occurred within days," said said PrivCo CEOSam Hamadeh.

PrivCo said the latest financing forced LivingSocial to re-price participating investors' previous rounds.

"[It] effectively means that its most recent investors entirely control the equity of the company," said Hamadeh, rendering stock held by the company's founders and its 4,000 employees essentially worthless. 

O'Shaughnessy called PrivCo's analysis "straight up fiction."

Shine wears off

LivingSocial may be second only to Groupon in its difficulties, just as it is second to Groupon in most other ways. As we've previously reported, daily deals sites are finding the going gets a lot tougher once the shine wears off.

The problem basically is that the daily deals business model relies on a rate of growth that may prove unsustainable. Both companies take in wads of cash from consumers but a large percentage of that cash must be paid back out to the merchants who floated the discounts that drew in the consumers.

Back in November, Groupon was reported to have about $1.2 billion in the bank but it owed about half of that to its merchant partners. Meanwhile, it has high sales and overhead costs that must be paid.

Over time, as growth slows, incoming revenue may not be sufficient to cover the merchants' share, raising the scary prospect of running out of cash.

Late last year, observers thought that crunch-time for one or both of the sites would come early this year. If PrivCo's account is accurate, it would seem that that prediction came true.

What's this mean for consumers? Not too much. As long as coupons are promptly redeemed, the financial risk rests much more heavily on the companies' shareholders and on the merchants who are awaiting payments.

We still have a little ways to go until spring officially hits but before you know it, it’ll be time to replace your shovels and ice scrapers with your garden hoses and sprinklers.

And to get a jump on getting your lawn in tip-top shape this year, we found a few tools to assist you. Not only will these garden and lawn aids save you time and back-breaking work, they’re also pretty unique and cool to look at, not to mention cool to own -- like the Weed Dragon propane weed remover on Amazon and Walmart.com for $56.

If you grew up like I did, then pulling weeds in or around the family garden was part of your responsibility and no matter how young and in shape you were, crouching down and bending over to yank out a countless amount of weeds certainly wasn’t an easy task, so the Weed Dragon would have come in pretty  handy back then. Note, however, that this is made for adults since it uses propane gas to remove the weeds. Sorry, kids, you'll have to stick with the old methods.

The creators of the Weed Dragon say it’s perfect for those who don’t need the full power of a farm torch so it’s properly scaled down for simple use. The company also says by using the Dragon you'll cut down on your need to mow or use chemical sprays to remove those weeds that are typically hard to reach.

The device comes already assembled and is able to connect to any reusable propane tank and it can also be connected to barbeque cylinders says the company.  And besides the Dragon being used for weed removal, it can also be used to thaw frozen water pipes, melt snow or ice on your driveway or patio and it can also be used to light charcoal or to light campfires when you go on camping trips.

Before you rush to order this, go out to your deck or backyard and hoist a full propane tank. Yes, they're heavy and you'll have to carry one around to power the Weed Dragon, but you'll still avoid some of the bending and kneeling. Nevertheless, it could save a lot of wear and tear on that precious back of yours, which you’ll probably need for small things like walking and moving at some point.

Robotic Lawn Mower

The Hondo Miimo Robotic Lawn Mower is for those folks who want a nice lawn so they can maintain that manicured look of their neighborhood, but don’t feel like trekking up and down their yard every week to do so.

Honda says the automatic mower continuously cuts 2 to 3 millimeters of grass at a time until your entire yard is cut, and it doesn’t need a bag, as the razors cut the grass so fine that it can be left on the lawn and be used as a natural fertilizer.

The Miimo is controlled by a border wire that the user installs slightly beneath the ground or within the lawn itself and the device is self-charging, so the Miimo will automatically slither back to its docking station whenever it’s running low on battery power. 

Honda hasn’t announced a price for the Miimo just yet, as its rumored to hit European markets first, then the U.S. sometime later this year, but there have been reports that prices will be somewhere in the neighborhood of $1,600, which is quite pricey, but if cutting the grass isn’t your thing, but having a nice lawn is, the hefty dollar amount of this device might be worth it for you.

Also, if you pay a lawn service to keep your lawn trim, the Miimo might pay for itself in a year or so.

Cordless shears

Then there are the Gardena Cordless Grass Shears that you can get on Amazon for about $130, which is a far cry from those rusty old fashioned hedge clippers that seem to lose sharpness pretty quickly.

The cutting width of the Gardena is 3.15 inches. It comes with blade protection and a charger for its two lithium ion batteries.

The company says that by charging the cordless trimmer for about six hours it will give you about 90 minutes of use before it has to be charged again, which isn’t the longest time in between charges, but the time you save by using this futuristic hedge clipper  should make up for the short operating time. 

With this device, you can quickly trim those hedges and get back to doing whatever you enjoy more, which is probably most things when you  think about how annoying yard work can be.

Indoor garden

This last item is perfect for folks like me, who have a stellar history of killing plants of all kinds, regardless of how careful I am to follow the care instructions and although it’s used indoors unlike the other products mentioned here, it can still be a cool addition to the items that you buy when doing your spring shopping for your home and yard.

The Prepara Soilless Indoor Garden grows plants without the use of soil and the company says it will work with just about any kind of seeds you put into it.

All one has to do is place the seeds into the sponge like material that holds them, place one of the covers over the seed and add a little bit of water to the plant mix that comes in the box.

So basically, there’s no fuss, no soil, no dirty hands and most importantly no guess work it deciding how much water or light the plant needs. The machine also ideal for those who may not have a yard or the space to grow outdoor plants, as the Prepara Soilless Indoor Garden can be used near a window, on a fire escape or on a balcony, so it’s perfect for city dwellers.

You can snag this guaranteed plant grower at Amazon for about $55.

When 15-year old Eric Rash, of rural Virginia, committed suicide in 2011, the investigating officer told his grieving parents they should get access to their son's Facebookaccount in their search for clues.

The Rashes, however, discovered that would not be easy. Facebook's terms and conditions make no provision for parents to take control, and close down a deceased child's Facebook account.

So the couple turned to the Virginia state legislature, which has passed a bill requiring Facebook to allow the Rashes, and other parents in similar circumstances, to gain access to their child's social media account if the child dies.

Facebook hedges

In a statement to WWBT-TV in Richmond, Va., Facebook hedged on its response to the legislation.

"These are tragic situations and Facebook always tries to be as helpful to families as possible while still complying with federal and state law," a spokesman told the station.

"I have asked to close my father's Facebook account, as he passed away almost a year ago," Alan, of Ontario, Canada, wrote at ConsumerAffairs. "It is still active. And I am getting notices from his account. Freaky! Big time. How much more do I need to notify them before closing his account?"

Traditional customer service doesn't work

As the Rush family discovered, that might not be easy. Part of the problem, no doubt, stems from the fact that Facebook has some 800 million members. With a customer base that large, and spread across the globe, traditional customer service methods simply don't work.

Patricia, of Minnetonka, Minn., has been trying to deactivate her Facebook account for a month.

"When I get to the end to 'Deactivate' Facebook, it requires me to put the password in, and every time I did Facebook says it's the wrong password," Patricia wrote in a ConsumerAffairs post. "So of course I carefully retype my password again and again, still it's wrong password. That is just wrong that Facebook can do that! What can be done?"

No 800 number

And it's not like there's an 800 number Patricia can call and get help from a human being. Harold, of Heiskell, Tenn., tells us he has also had trouble deleting his own accounts.

"We had a number of Facebook accounts and pages," Harold writes. "Over the past several months we were partially shut down so we could not do various things on a number of occasions on these accounts."

Harold decided to get rid of all the accounts and says he was able to delete all them -- except for one.

"They have us blocked so that we can not access this account, to delete the account," he wrote. "We have so far sent nine emails to Facebook, to three separate email addresses. We have received three general, useless information emails in return. We have called a phone number, and have tried several of the extensions, which all say the same thing. Facebook does not have any live telephone support."

Another day older and deeper in debt is commonly considered to be the plight of the working man and woman, but the situation doesn't necessarily improve with age, a new study finds. 

Mortgages and other housing debt topped the list for families headed by someone 55 or older. Almost three-fourths of debt payments go to pay for housing debt among these families.

Another study, meanwhile, finds that Social Security payments are the primary source of income for a growing number of retirees, as private pension plans dry up and personal savings pay little or no interest. 

The nonpartisan Employee Benefit Research Institute (EBRI) study found that families headed by individuals 75 or older had increases in the incidence of debt, the average amount of debt held, and the percentage with debt payments greater than 40 percent of their income in 2010,

In contrast, families headed by those with ages just before normal retirement age (55–64) and just after (65–74) had very small changes in these debt measures and in some cases improvements.

For families with heads 75 or older, the average debt level increased from $13,665 in 2007 to $27,409 in 2010. The average debt of all of those headed by individuals 55 and older stood at $75,082 in 2010, up more than $1,300 (in 2010 dollars) from 2007.

Highest debt levels

However, the families found to have the highest levels of debt were those with heads ages 55–64, those most likely to still be working. Among those families with heads age 55–64, the average debt level was $107,060 in 2010, down from $112,075 in 2007.

“These debt results are troubling as far as future retirement preparedness is concerned, in that the data indicate that American families approaching retirement or newly retired are more likely to have debt—and higher levels of debt—than past generations,” said Craig Copeland, senior research associate at EBRI and author of the article on debt of the elderly.

“Older families that have taken on higher housing debt may well eventually have difficulty avoiding a major lifestyle change in living standards in retirement, certainly if they are planning to rely on their home as an income producing asset.”

For all American families with heads age 55 or older, the percentage with debt held steady from 2007 to 2010, at roughly 63 percent. Furthermore, those with debt payments greater than 40 percent of income—a traditional threshold measure of
debt load trouble—dropped to 8.5 percent in 2010 from almost 10 percent in 2007.

Despite the overall trend, the percentage of families with heads age 75 or older having debt increased from 31.2 percent in 2007 to 38.5 percent in 2010 and the percentage total debt payments represent of income increased from 4.5 percent to
7.1 percent.

Social Security is vital

Another recent EBRI study confirmed the importance of Social Security payments, finding that the government program is the primary source of income for all age groups above 65.

 In 2009, households ages 65–74 and households with members age 85 or above received 54 percent and 66 percent of their total household incomes, respectively, from Social Security benefits.

Income from pensions and annuities is the second-largest source of income for older households.

The importance of Social Security income increases with age. For households that had members ages 65–69 in 2001, the share of household income derived from Social Security rose from 47 percent in 2001 to almost 60 percent in 2009.

The study found that while about 60 percent of elderly American households spend less than their incomes, in 2009 more than 14 percent of older households spent considerably more than their income.

Singles, households with no pensions, African-Americans and Hispanics have larger shares of households with deficits. Health care and home related expenses are the biggest drivers of income deficit.

Sudipto Banerjee, EBRI research associate and author of the article on income of the elderly, noted that deficit spending is especially damaging for elderly Americans with low incomes.

“Those with an income shortfall are far more likely to be low-income, low-asset households, and they spend down their liquid assets at a faster rate than
households that do not have an income shortfall,” Banerjee said.

Children who have their tonsils or adenoids removed often get codeine as a pain reliever after the surgery. But the U.S. Food and Drug Administration (FDA) warns that doctors should be extremely careful prescribing codeine in such cases.

Some children have died after being given codeine, leading the FDA to order a "Black Box" warning -- its strongest -- to alert doctors and other health professionals to the danger.

The agency says doctors should use an alternate pain reliever -- ibuprofen is a likely candidate -- and parents should monitor their child's treatment and insist that codeine not be used.

The warning applies only to tonsillectomy and adenoidectomy procedures, which are often used to relieve discomfort and sleep apnea in children. Sleep apnea is a dangerous condition that interferes with sleep but that can also cause death in some cases.

The problem is that some children are "ultra-rapid metabolizers" of codeine, meaning that their liver converts codeine to morphine in higher than normal amounts, possibly leading to a lethal dose in children who already have sleep apnea or other breathing problems.

A search of FDA's Adverse Event Reporting System (AERS) database from 1969 to May 1, 2012 identified 10 deaths and three overdoses associated with codeine. Many of these children were recovering from a surgery to remove their tonsils or adenoids.

The cases occurred in children who showed evidence of being ultra-rapid metabolizers. The children ranged in age from 21 months to 9 years old. All of the children received doses of codeine that were within the typical dose range, meaning that they were not given extra amounts of the medication.

In these cases, the signs of morphine overdose developed within one to two days after the children started taking codeine.

Signs of trouble

Parents and caregivers should watch children receiving codeine for pain closely for signs of morphine overdose. There are a number of symptoms to watch for, says Bob Rappaport, M.D., director of the Division of Anesthesia, Analgesia and Addiction Products (DAAAP) in FDA's Center for Drug Evaluation and Research.

If your child shows these signs, stop giving the codeine and seek medical attention immediately by taking your child to the emergency room or calling 911:

• Unusual sleepiness, such as being difficult to wake up
• Disorientation or confusion
• Labored or noisy breathing, such as breathing shallowly with a "sighing" pattern of breathing or deep breaths separated by abnormally long pauses
• Blueness on the lips or around the mouth

"The most important thing is that caregivers should tell the 911 operator or emergency department staff that their child has been taking codeine and is having breathing problems," Rappaport says.

Talk to your child's health care professional if you have any questions or concerns about codeine. If health care professionals decide that the benefit of prescribing products that contain codeine to pediatric patients outweighs the risk, FDA is advising that the lowest effective dose be prescribed for the shortest period of time.

Four former officials of the Peanut Corporation of America (PCA) and a related company have been indicted on numerous charges relating to salmonella-tainted peanuts and peanut products.

The Justice Department says Stewart Parnell, 58, of Lynchburg, Va.; Michael Parnell, 54, of Midlothian, Va.; and Samuel Lightsey, 48, of Blakely, Ga., have been charged with mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy. Stewart Parnell, Lightsey and Mary Wilkerson, 39, of Edison, Ga., were also charged with obstruction of justice.

In addition, Daniel Kilgore, 44, of Blakely has pleaded guilty to charges including mail and wire fraud, the introduction of adulterated and misbranded food into interstate commerce with the intent to defraud or mislead, and conspiracy.

Dates to 2009 Salmonella outbreak

The investigation into the activity at PCA began in 2009, after the Food and Drug Administration (FDA) and the U.S. Centers for Disease Control and Prevention (CDC) traced a national outbreak of Salmonella to a PCA plant in Blakely as the likely source.

As alleged in the indictment, the Blakely plant was a peanut roasting facility where PCA roasted raw peanuts and produced granulated peanuts, peanut butter, and peanut paste; PCA sold these peanut products to its customers around the country.

The charging documents allege that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to manufacture and ship salmonella-contaminated peanuts and peanut products, and in so doing misled PCA customers. As alleged in the indictment, those customers ranged in size from small, family-owned businesses to global, multibillion-dollar food companies.

“When those responsible for producing or supplying our food lie and cut corners, as alleged in the indictment, they put all of us at risk,” said Stuart F. Delery, who heads the Justice Department’s Civil Division. “The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the safety of Americans who have done nothing more than eat a peanut butter and jelly sandwich.”

Multitude of charges

Although PCA is now no longer in business, the allegations against each of the defendants arise from his or her conduct while at PCA and a related company. The following allegations are set forth in the indictment: Stewart Parnell was an owner and president of PCA; Michael Parnell, who worked at P.P. Sales, was a food broker who worked on behalf of PCA; Lightsey was the operations manager at the Blakely plant from on or about July 2008 through February 2009; and Wilkerson held various positions at the Blakely plant -- receptionist, office manager and quality assurance manager -- from on or about April 2002 through February 2009. As charged in the information, Kilgore served as operations manager of the PCA plant in Blakely from on or about June 2002 through May 2008.

“We all place a great deal of trust in the companies and individuals who prepare and package our food, often times taking it for granted that the public’s health and safety interests will outweigh individual and corporate greed,” said Michael Moore, U.S. Attorney for the Middle District of Georgia. “Unfortunately and as alleged in the indictment, these defendants cared less about the quality of the food they were providing to the American people and more about the quantity of money they were gathering while disregarding food safety. This investigation was complex and extensive, and I credit the cooperation of our federal agencies with not only making sure that the cause of this outbreak was uncovered and the people responsible called to account, but also with working hard every day to make sure that parents across the country can feel confident that the food they are feeding their children is safe.”

The charging documents maintain that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in several schemes by which they defrauded PCA customers about the quality and purity of their peanut products and specifically misled PCA customers about the existence of foodborne pathogens, most notably salmonella, in the peanut products PCA sold to them.

As the charging documents allege, the members of the conspiracy did so in several ways -- for example -- even when laboratory testing revealed the presence of salmonella in peanut products from the Blakely plant, Stewart Parnell, Michael Parnell, Lightsey and Kilgore failed to notify customers of the presence of salmonella in the products shipped to them.

In addition, the charging documents contend that Stewart Parnell, Michael Parnell, Lightsey and Kilgore participated in a scheme to fabricate certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including results concerning the presence or absence of pathogens.

As alleged in the charging documents, on several occasions these four defendants participated in a scheme to fabricate COAs stating that shipments of peanut products were free of pathogens when, in fact, there had been no tests on the products at all or when the laboratory results showed that a sample tested positive for salmonella.

FDA inspections

After the salmonella outbreak that gave rise to this investigation, FDA inspectors visited the plant several times in January 2009. According to the indictment, the inspectors asked specific questions about the plant, its operations, and its history, and, in several instances, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to these questions.

Stewart Parnell, Michael Parnell, and Samuel Lightsey are each charged with two counts of conspiracy; multiple counts of introducing adulterated food into interstate commerce with the intent to defraud; multiple counts of introducing misbranded food into interstate commerce with the intent to defraud; multiple counts of interstate shipment fraud; and multiple counts of wire fraud. Stewart Parnell, Lightsey and Wilkerson are also charged with multiple counts of obstruction of justice.

Kilgore pleaded guilty to one count of conspiracy to commit fraud, one count of conspiracy to introduce adulterated and misbranded food into interstate commerce, eight counts of introducing adulterated food into interstate commerce with the intent to defraud, six counts of introducing misbranded food into interstate commerce with the intent to defraud, eight counts of interstate shipment fraud, and five counts of wire fraud.

The tide seems to be turning for homeowners trying to sell.

The National Association of Realtors (NAR) reports sales of existing-home sales inched higher in January as home prices continued their steady advance. Sales rose in every region but the West, which is the region hit hardest by limited inventory.

Sales of previously-owned homes, which include single-family homes, townhomes, condominiums and co-ops, rose 0.4 percent to a seasonally adjusted annual rate of 4.92 million in January from a downwardly revised 4.90 million in December. Sales are 9.1 percent above the 4.51 million-unit pace in January 2012.

Higher buyer traffic

Tight inventory is a major factor in the market. "Buyer traffic is continuing to pick up, while seller traffic is holding steady," said Lawrence Yun, NAR chief economist. "In fact, buyer traffic is 40 percent above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly. We've transitioned into a seller's market in much of the country."

Total housing inventory at the end of January fell 4.9 percent -- to 1.74 million existing homes available for sale. That represents a 4.2-month supply 2 at the current sales pace, compared with 4.5 months in December. It's the lowest housing supply since April 2005 when it was also 4.2 months.

Listed inventory is 25.3 percent below a year ago when there was a 6.2-month supply. Raw unsold inventory is at the lowest level since December 1999 when there were 1.71 million homes on the market.

"We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth," Yun explained.

Prices on the rise

The national median existing-home price for all housing types was $173,600 in January -- up 12.3 percent from January 2012, which is the 11th consecutive month of year-over-year price increases. The January gain is the strongest since November 2005 when it was 12.9 percent above a year earlier.

Distressed homes -- foreclosures and short sales -- accounted for 23 percent of January sales, down one percent from December and 12 percent from a year earlier. Fourteen percent of January sales were foreclosures and nine percent were short sales. Foreclosures sold for an average discount of 20 percent below market value in January, while short sales were discounted 12 percent.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage rose to 3.41 percent in January from a record low 3.35 percent in December; it was 3.92 percent in January 2012.

Regional sales

• Existing-home sales in the Northeast increased 4.8 percent -- to an annual rate of 650,000 in January and are 12.1 percent above January 2012. The median price in the Northeast was $230,500, up 2.4 percent from a year ago.
• Sales in the Midwest rose 3.6 percent in January to a pace of 1.16 million and are 17.2 percent higher than a year ago. The median price in the Midwest was $131,800 -- 8.6 percent above January 2012.
• In the South, existing-home sales increased 1.0 percent to an annual level of 1.96 million in January and are 14.0 percent above January 2012. The median price in the South was $152,100, up 13.4 percent from a year ago.
• Existing-home sales in the West fell 5.7 percent to a pace of 1.15 million in January and are 5.7 percent below a year ago. The median price in the West was $239,800, which is 26.6 percent above January 2012.

Not much sign of inflation last month as the Labor Department's Consumer Price Index (CPI) was unchanged for a second straight month.

A major factor in the decline was a 1.7 percent drop in energy costs, thanks to decreasing prices for gasoline (3.0 percent) and natural gas (2.5 percent). The price of fuel oil rose (2.0 percent) as did the cost of electricity prices (0.5 percent ).

Food prices were unchanged in January after rising in each of the previous 10 months. Three major grocery store food group indexes increased in January. Dairy and related products rose 0.4 percent in January -- its sixth increase in a row. Fruits and vegetables rose 0.3 percent, and cereals and bakery products increased 0.1 percent.

In contrast to these increases, prices for nonalcoholic beverages declined 0.5 percent in January, and the cost of meats, poultry, fish and eggs was unchanged.

'Core inflation'

The “core rate,” which strips out the volatile food and energy sectors increased 0.3 percent in

January. Increases in price of shelter and apparel accounted for much of the increase, with advances in recreation, medical care, and airline fares also contributing.

Overall, consumer prices are up 1.6 percent over the last 12 months, with an increase in food prices of 1.6 percent over the last 12 months and energy prices down 1.0 percent.

Jobless claims

Separately, the government reports the number of people applying for unemployment benefits for the first time jumped by 20,000 in the week ended Feb. 16 -- to 362,000.

The 4-week moving average was 360,750 -- an increase of 8,000 from the previous week's revised average of 352,750. Economists consider the 4-week moving average a more accurate barometer of the labor market as it is not as volatile as the weekly reports.

The Natrelle 410 Highly Cohesive Anatomically Shaped Silicone-Gel Filled Breast Implant has won the approval of the U.S. Food and Drug Administration (FDA).

The implants, manufactured by Allergan, Inc., of Irvine, CA, are to be used to increase breast size (augmentation) in women at least 22 years old and to rebuild breast tissue (reconstruction) in women of any age.

The FDA based its approval on seven years of data from 941 women. Most complications and outcomes reflect those found in previous breast implant studies including tightening of the area around the implant (capsular contracture), re-operation, implant removal, an uneven appearance (asymmetry), and infection. In addition, investigators observed fissures (cracks) in the gel of some Natrelle 410 implants -- a characteristic called gel fracture which is unique to this implant.

“It’s important to remember that breast implants are not lifetime devices,” said Jeffrey Shuren, M.D., director of the FDA’s Center for Devices and Radiological Health. “Women should fully understand the risks associated with breast implants before considering augmentation or reconstruction surgery, and they should recognize that long-term monitoring is essential.”

'Reasonably' safe and effective

Shuren said the reviewed data showed a “reasonable assurance of safety and effectiveness,” but added, “We will be looking at the results from post-approval studies that will focus on their long-term safety and effectiveness.”

The silicone gel in the Natrelle 410 implant contains more cross-linking compared to the silicone gel used in Allergan’s previously approved Natrelle implant. This increased cross-linking results in a silicone gel that’s firmer. Cross-linking refers to the bonds that link one silicone chain to another. The clinical significance of this type of silicone gel is not known.

Allergan’s studies did not compare the safety and effectiveness of the Natrelle 410 implant to other previously approved silicone gel-filled breast implants on the market. Therefore, these implants cannot be directly compared to any previously FDA-approved implant.

Post-approval studies required

The FDA requires that Allergan conduct a series of post-approval studies to assess long-term safety and effectiveness outcomes and the risks of rare disease. Lessons learned from previous post-approval studies on silicone gel-filled breast implants informed the design of post-approval studies for the Natrelle 410.

As a condition of approval for the Natrelle 410 breast implants, Allergan must:

• Continue to follow, for an additional five years, approximately 3,500 women who received the Natrelle 410 implants as part of the company’s continued access study;
• Conduct a 10-year study of more than 2,000 women receiving Natrelle 410 silicone gel-filled implants post-approval to collect information on long-term local complications (e.g., capsular contracture, reoperation, removal of implant, implant rupture) and less common potential disease outcomes (e.g., rheumatoid arthritis, breast and lung cancer, reproductive complications);
• Conduct five case control studies to evaluate the possible association between the Natrelle 410 implants, as well as other silicone gel-filled breast implants, and five rare diseases -- rare connective tissue disease, neurological disease, brain cancer, cervical/vulvar cancer and lymphoma;
• Evaluate women’s perceptions of the patient labeling; and
• Analyze the Natrelle 410 implants that are removed from patients and returned to the manufacturer.

Silicone gel-filled breast implants are medical devices implanted under the breast tissue or under the chest muscle for breast augmentation or reconstruction. These implants have a silicone outer shell that is filled with silicone gel. They come in different sizes and styles. They have either smooth or textured shells.

Breast reconstruction includes primary reconstruction to replace breast tissue that has been removed due to cancer or trauma or that has failed to develop properly due to a severe breast abnormality. Breast reconstruction also includes revision surgery to correct or improve the result of a primary breast reconstruction surgery.

Breast augmentation includes primary breast augmentation to increase the breast size, as well as revision surgery to correct or improve the result of a primary breast augmentation surgery.

With this approval, there are now four FDA-approved silicone gel-filled breast implant products available in the U.S. manufactured by three companies: Allergan, Mentor and Sientra.

When a company puts out a “help wanted” call and you apply, you would at least expect to hear, “we've decided to go in another direction,” or some platitude when you don't make the cut. Don't count count on it.

A nationwide survey by CareerBuilder finds that more than 25 percent of workers say they had a bad experience when applying for a job. And that's not the worst of it. Seventy-five percent of those who applied for jobs using various resources in the last year said they never heard back from the employer.

While this speaks to the challenges of finding employment in a highly competitive market, it also brings to light negative implications for today's employers. The survey shows candidates who have had a bad experience when applying for a position are less likely to seek employment at that company again and are more likely to discourage friends and family from applying or purchasing products from that company.

How important is it to acknowledge every job applicant?

• Eighty-two percent of workers expect to hear back from a company when they apply for a job regardless of whether the employer is interested. Nearly one-third (32 percent) said they would be less inclined to purchase products or services from a company that didn't respond to their application.

What constitutes a bad applicant experience?

• Twenty-six percent of workers have had a bad experience as a job applicant, citing a lack of follow through, inconsistencies from the employer or poor representation of the company's brand as the primary culprits.
• Employer never bothered letting me know the decision after the interview -- 60 percent
• Found out during the interview that the job didn't match what was written in the job ad -- 43 percent
• Company representative didn't present a positive work experience -- 34 percent
• Company representative didn't seem to be knowledgeable -- 30 percent
• Employer never acknowledged receiving my application -- 29 percent

What would workers do if they have a bad applicant experience?

The effects of one candidate's negative experience can lead to a broader impact on the employer's ability to recruit or sell products. Workers said if they are dissatisfied with the way their application is handled by an employer, they would:

• Never seek employment at the company again --- 42 percent
• Tell others not to work there -- 22 percent
• Tell others not to purchase products or services from the company -- 9 percent

What would workers do if they have a good applicant experience?

The study found that a good applicant experience can have positive long-term effects for organizations regardless if the candidate was actually hired. Workers said if they are happy with the way they are treated by an employer when applying for a job, they would:

• Consider seeking employment with the company again in the future – 56 percent
• Tell others to seek employment there – 37 percent
• Be more likely to purchase products or services from the company – 23 percent

"From the second job seekers are viewing your job ad and applying to your company, they are forming an opinion of who you are as an employer and as a business," said Sanja Licina, Ph.D. and Senior Director of Talent Intelligence at CareerBuilder. "One bad applicant experience can have a ripple effect with candidates not only vocalizing their dissatisfaction with how they were treated, but encouraging others not to apply or even buy products from that company. It's so critical that your employment brand effectively carries through at every touch point with candidates."

The study of more than 3,900 U.S. workers was conducted online by Harris Interactive from November 1 to November 30, 2012.  

Dog owners have been raising a stink over some of the pet treats produced by Kasel Industries and now the company's West Denver neighbors are getting into the act as well.

The problem is the place stinks, according to more than 150 complaints the city has received in recent years. 

"Caller left message regarding terrible odor. Said he was 'throwing up'," was a typical complaint recorded last year, according to Westword, a community news site.

Pet owners outside the Denver area may not care what the place smells like but many of them are irate about products Kasel has recalled in recent years, products like:

• Boots & Barkley pigs ears;
• Nature's Deli chicken jerky dog treats; and
• American Variety Pack treats, recalled today along with all other products made at the plant from April 20, 2012, thru September 19, 2012.

The recalls involve possible Salmonella contamination of the treats. This is particularly galling to pet owners who seek out pet food and treats made in the United States, hoping to avoid the dangers associated with products containing ingredients from China.

"I better start seeing this crap pulled from shelves at Petsmart... fat chance," said ConsumerAffairs reader Merri Krishnan in a Facebook posting after a batch of pig ears were recalled. 

But as Merri said, fat chance. Kasel is still operating, its products can be found in most pet stores and the neighbors are still beefing, despite the recalls and the efforts of the Food and Drug Administration and the Colorado Department of Agriculture, which have both found Salmonella in some of the company's products.

A citation

The city of Denver finally got into the act, responding last year to the neighbor's complaints. It issued an odor citation to Kasel, citing a section of Denver's air pollution ordinance and informed the plant's owner, Ray Kasel, that the fine would be $500.

Now you might say that $500 is a small price to pay for making West Denver smell like a rendering plant but Ray Kasel didn't take kindly to the citation. He filed an appeal, saying the neighbors were untrustworthy and claiming the wind was blowing the stench the other way on the days the neighbors complained.

The hearing officer was not impressed and the appeal was denied. So Kasel did what any respectable pig ear entrepreneur would do. He sued the city in federal court, claiming it was conspiring against him, harassing him and violating his constitutional property rights. He also sued various city officials and some of the complaining neighbors.

Leaving aside the legal niceties, Kasel appears to be arguing that it's not his fault that dead animals smell bad and that the nature of the neighborhood has changed since he went into business in 1986.

The West Denver neighborhood -- which for some reason is called RiNo -- was for decades an industrial area. Kasel's neighbors include a sausage factory, a company that cleans septic tanks and a corned beef plant, according to Westword. 

Probably none of these folks would say they should be run out of town just because some vacant industrial buildings have been turned into condos occupied by hipsters, artists and others not habituated to barnyard aromas.

As for pet owners looking for red-blooded American dog treats, our advice is to stick with baked snacks. Leave the pig ears out of it.

Whenever you’re trying to eliminate clutter, there’s an inner battle that can sometimes ensue.

One side of yourself may say, “You’ll never use this thing again and if you were brave enough and if you really wanted to do a thorough cleaning, you would get rid of this God-forsaken space gobbler right away."

At the same time the other side is saying in complete opposition, “Where’s your level of sentimentality? Are you really going to toss this precious belonging out or let some strange Salvation Army guy throw it in the back of his truck and drive off with it forever?"

Many of us have that conversation with ourselves when trying to de-clutter our homes, while others are far less attached to their possessions and just want to get rid of things to make more space. Many of the less sentimental will sell their items at a yard sale or tag sale while others will rely on that Salvation Army guy to haul away everthing in one simple shot.

But there are many others, millions in fact, who have turned to sites like FreeSharing.org and Freecycle.org to get rid of their stuff, sites that use the theory that one person’s trash is another person’s new couch, TV or baby stroller.

FreeSharing

The creators of FreeSharing.org say its main goal is to keep items out of the landfill and it uses over 900 groups in local communities across the United States, Canada and other parts of the globe, to place items that are still in decent shape in the hands and lives of people who really need them.

The concept of free sharing or "freecycling," as it's known, isn’t a new one, but FreeSharing.org has made the practice much easier for folks by pooling local recycling groups that do things like manage the item exchange between you and the person you’re donating to. They can also tell you who needs what items in the communities they work in.

A lot of current users believe donating items through a recycling group in their area is better than blindly giving items away to the Salvation Army or similar organizations.

FreeSharing.org doesn’t actually organize the sharing for you or help you give items away; it instead serves as an Internet hub that connects users to local sharing companies that all have a dual mission to better the environment and place items with people who have a specific need.

For example, if you have an old coffee table that you no longer need, FreeSharing.org doesn’t want you to just leave it on your curb for the garbage man or for the neighborhood to grab up. Instead it wants you to use a little more strategy when getting rid of your items to not only help the environment but also to help someone who may not be able to afford an expensive item at that specific moment.

Some of the other freecycling or sharing sites include FreeUse.org, StagaNetwork.com, FreeMesa.com, Around Again, Worldwide Free Share and countless others. Just as when using any other site where communicating with strangers is a possibility, users are encouraged to follow all of the usual safety measures like not revealing personal information and being extra careful if you decide to meet with a person to exchange an item.

Freecycle.org

Probably considered the granddaddy of the sharing sites is Freecycle.org with a presence in over 85 countries around the globe. The site also works with thousands of community groups and the number of users in the Freecylce network is reportedly in the millions.

Local groups must be part of a Yahoo group or use the company’s software to participate in sharing, which some groups don’t like, but many believe having access to Freecycle’s vast network makes following that particular rule far worth it.

However, if you’re part of a recycling group in your area and don’t want to use Yahoo or Freecycle’s software, other recycling sites like FreeSharing.com may be a better fit for you.

The website ReUseItNework.org is another recycling hub that places items with the people that need them, and unlike similar sites, the creators tell users that your items don’t have to be in perfect condition as many who use the site like to repair things and are aware items may not be in the best condition.

The ReUseIt site pretty much has a global network and works in a way similar to the other recycling sites, as it’s mainly a hub for local recyclers to join or for people to exchange items for free.

And of course a lot of people don’t just donate on these kinds of sites, they also use them to get free stuff that they may need or want, but just like anytime you buy or receive something used, you always take on the risk of that item being a piece of junk, which some people who have used these types of sites have complained about.

But all in all, the concept of freecycling or freesharing is a good one, since many say the environment will benefit and people who may not be able to afford it can get things for free.

And most of all, people can finally get a chance to remove some of that clutter that they’ve been hanging on to, which can provide the necessary physical and mental space that most of us need.

Toddlers like to start their day watching Elmo and Cookie Monster, so Post Foods thinks they'll like adding Sesame Street Cereal to their mornings.

Seeking to get out ahead of the critics, Post is pushing the line that the two new oat-based cereals -- in apple and banana flavors -- contain whole grain, natural flavors, only one gram of sugar per serving and "nutrients to help support healthy brain development."

At least one frequent critic of the food industry is praising Post.

"It is great to see Post marketing a healthy, low sugar, whole grain cereal to kids," said Margo Wootan, director of nutrition policy at the Center for Science in the Public Interest. "We need more companies to make healthy eating fun for kids and easy for parents."

Doctor Mom

The company has also lined up an endorsement from Dr. Roshini Raj, a gastroenterologist and internist and attending physician at NYU Medical Center/Tisch Hospital in New York City.

“As a doctor who is also a mom to two young children, I’m thrilled to find a product that is a healthy option for my kids and was created with their specific nutritional and functional needs in mind,” said Raj in a Post press release. “The Whole Grain content and fortification of nutrients like choline, iron and zinc are essential to a growing toddler’s diet.”

Dr. Raj  also serves as an Assistant Professor of Medicine at the NYU School of Medicine. 

X and O

Post says the “X” and “O” shapes in each box are specifically designed for little fingers to easily grasp and are formulated to melt in a toddler’s mouth quickly for safe and easy consumption. In addition, educational activities are featured on the back of each box, encouraging number and letter skills.

Post's other cereals include Post Raisin Bran, Honey Bunches of Oats, Bran Flakes and Fruity Pebbles.

The company's president recently vowed to work harder to "become a long-term share gainer" after Post cereals lost market share in the first quarter of 2013.

Saying the loss was "self-inflicted," Terence Block said he was preparing to launch "the most aggressive new product line-up Post has had in years," according to Bakery and Snacks, a trade publication.